UAE: What happens to accumulated annual leaves as year ends

Question: I work in a mainland company in Dubai. I have several accumulated leaves pending. What happens to these in the new year?

Response: It is assumed that you are employed on a full-time basis. Therefore, the provisions of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations (the ‘Employment Law’) and the Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations (the ‘Cabinet Resolution No. 1 of 2022’) are applicable.

In the UAE, an employee is entitled to 30 calendar days of annual leave for each year of continuous service with the employer. This is in accordance with Article 29 (1) of the Employment Law. Further, an employer needs to grant an employee with annual leave at least once in two years. This is in accordance with Article 29 (8) of the Employment Law, which states: “The Employer may not prevent the employee from using his accrued annual leave for more than two years, unless the employee wants to carry it over or be paid in lieu of leave according to the Establishment bylaws and as specified by the Executive Regulations of this Decree-Law."

However, an employee may only carry forward 15 days of his annual leave to the following year. This is in accordance with Article 19 of the Cabinet Resolution No. 1 of 2022, which states: "Subject to the provisions of clauses (8) and (9) of Article (29) of the Decree Law:

1. The employee may carry forward not more than half of the annual leave to the following year, or he may agree with the employer to receive a cash allowance thereof, according to the salary he receives at the times of his entitlement of the leave.

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